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Checked against official sources · Last reviewed October 13, 2026

What homeowners insurance costs in Kentucky: average premium, 2023 $1,525 a year in Kentucky vs. $1,737 countrywide · 30th highest of 51 · All states (HO-3 policies; NAIC)

Kentucky's market right now

The Kentucky FAIR Plan, the state's insurer of last resort, says it had 3,189 policies in force as of January 2026. Most of those (85%) were dwelling fire policies; 11% were homeowners policies. It received 672 new applications in 2025, down from 754 in 2024.

The plan lost money in 2025. It reported a combined ratio of 140.92% for the year (losses and expenses compared with premium) and a net loss of $759,632, after net income of $77,614 in 2024. Its members' equity was about $15.3 million at the end of 2025.

The Department of Insurance keeps a disaster page for people hurt by storms since February 15, 2025, and it notes that on June 27, 2026, Governor Andy Beshear declared a state of emergency because of flooding. The page links to the department's post-disaster claims guide and its list of insurer claim phone numbers. See the DOI disaster page for updates. [5][8][9]

Last resort: the Kentucky FAIR Plan

FAIR stands for "fair access to insurance requirements." Kentucky law requires every insurer licensed to write property or casualty insurance in the state to set up and fund a FAIR plan, and to be a member of it as a condition of doing business here.

The plan's mission is basic coverage for property owners who, "through their agent or producer, have exhausted all coverage options available through the voluntary market." Key points:

- Apply through an agent. Consumers "must contact a producer, licensed in Kentucky" to apply. Agents can't bind coverage; the plan decides after underwriting. - Limited coverage. All policies pay actual cash value (replacement cost minus depreciation). The most the plan will insure on a home is $200,000 for the dwelling, and homeowners liability is $100,000. - Its own notice rules. Kentucky's general nonrenewal law doesn't apply to policies issued through a residual market mechanism like the FAIR Plan. The plan's rules require 30 days' written notice once a policy has been in effect more than 60 days (5 days for certain conditions such as abandonment or unpaid utilities), with the reason and your right to appeal.

Full details: our Kentucky FAIR Plan page. [2][3][10][11][12][13][14][15]

If your insurer cancels or won't renew

Kentucky's cancellation and nonrenewal law (KRS 304.20-300 to 304.20-350) covers property and casualty policies other than auto liability and residual-market policies. Under it:

- Nonrenewal: The insurer must mail or deliver written notice "at least seventy-five (75) days before the end of the policy period," with "a written explanation of the specific reason or reasons." If it doesn't, your coverage is treated as renewed on the same terms once you pay the premium, until you accept other coverage or agree to the nonrenewal. - Cancellation mid-term: The notice must be in writing, give the effective date and the specific reasons. It must come at least 14 days ahead if the reason is nonpaid premium or the policy is less than 60 days old, and at least 75 days ahead once the policy has been in effect more than 60 days. - Allowed reasons to cancel: After 60 days (or after a renewal takes effect), an insurer can cancel only for nonpayment; fraud or material misrepresentation; willful or reckless acts that increase a hazard; a change in the risk that substantially increases a hazard; a code violation that substantially increases a hazard; inability to reinsure the risk; or a finding by the commissioner that keeping the policy would break insurance law. - Big premium jumps: An insurer can't raise your premium more than 25% over the last term for like coverage unless it sends the renewal premium notice at least 75 days before the term ends. - Renewal bill: For any renewal, the insurer must send the renewal premium notice or bill at least 30 days before the policy period ends. - Moving you within a group to a different company counts as a termination under this law. - Turned down for a new policy? You may ask in writing why, and the insurer must answer promptly in writing.

What an insurer can't base a decision on alone: your age, sex, race, religion or marital status; the age or location of your home (unless for a real business purpose); another insurer having dropped you; your having had a FAIR Plan or nonstandard policy; or losses that "immediately result from a natural cause" that could not have been prevented "by the exercise of prudence, diligence, and care."

In Advisory Opinion 2024-01 (May 22, 2024), the Department of Insurance told insurers they may not use vague words such as "fire," "lightning," "water" or "ice" as the reason in a nonrenewal or declination notice, and said it "will initiate appropriate action and issue penalties" against insurers that keep using general terms. A department regulation (806 KAR 20:010) says reasons must give specific grounds and "shall not rely on general underwriting reasons."

We found no 2025 or 2026 change to these notice periods: the official statute pages, which include enactments through the 2026 Regular Session, show KRS 304.20-320 was last amended in 2000. [1][15][16][17][18][19][20][21]

FORTIFIED roof discounts and the optional roof upgrade

The Strengthen Kentucky Homes Act (House Bill 256, signed April 5, 2024) added two rules for home insurers, starting with policies issued or renewed on or after March 1, 2026:

- Discount: Insurers writing wind or hail coverage on a home certified to the Insurance Institute for Business and Home Safety's (IBHS) FORTIFIED standards "shall provide a premium discount or rate reduction" if it is "actuarially justified" and there is credible evidence of cost savings. The law doesn't set a percentage. An insurer that offers the discount must give it when it gets a certificate of compliance for your home. - Optional roof upgrade coverage: Insurers writing homeowners coverage on a single-family home that isn't FORTIFIED must offer an optional rider that pays the cost to upgrade the roof structure to the FORTIFIED Home standard when a covered claim requires replacing the roof. A 2026 amendment (effective July 15, 2026) ties that cost to the roof structure.

On September 30, 2026, the Department of Insurance warned insurers that some of their FORTIFIED rider filings broke the law (for example, by excluding roof decking or the extra cost of required materials) and told them to withdraw and refile by November 1, 2026. Because insurers must offer the rider, you can ask your agent or insurer about it.

The state's grant program keeps a list of companies offering a FORTIFIED discount in Kentucky. More on the standard: FORTIFIED roof. [6][22][23][24][25]

Grants: Strengthen Kentucky Homes

Strengthen Kentucky Homes (SKH), run by the Department of Insurance, gives grants of up to $10,000 to upgrade a home's roof to the IBHS FORTIFIED Roof standard. The 2024 law moved $5,000,000 into the program fund for fiscal year 2025-2026.

Status as of Oct. 13, 2026: Round 1 applications are closed. The program says "SKH PROGRAM ROUND 1 APPLICATIONS ARE CLOSED EFFECTIVE OCTOBER 1, 2026." It is still processing applications already in its system, and people on the waitlist "will receive first priority for future funding rounds."

Rules for homeowners, from the program:

- You must own the home and live in Kentucky. Condominiums and mobile homes aren't eligible. - Wait for approval before hiring anyone: "Homeowners who select a Contractor and begin work on the project before receiving approval from SKH are not eligible for the grant." - You pay the FORTIFIED evaluator's fees and any construction cost above the grant. Grant money goes directly to the contractor. - The finished roof must earn the FORTIFIED Roof designation. FORTIFIED designations last five years, and you can give the certificate to your insurer for a discount.

Questions: skh.doi@ky.gov. [6][22][26]

Surplus lines

Surplus lines insurers are not licensed (admitted) in Kentucky but may sell coverage here through a licensed surplus lines broker. Kentucky law allows this only after a licensed agent, "after a diligent effort," couldn't place the full amount of coverage with an admitted insurer that writes that kind of insurance, and not just to get a lower premium or better terms. More: surplus lines insurance. [27]

Flood is a separate policy

The Department of Insurance's post-disaster claims guide says "most policies won't cover damage from floods or earthquakes unless you bought that coverage separately." For flood zones and flood insurance, see our sister site FloodHawk. [28]

Where to get help

The Kentucky Department of Insurance's Division of Consumer Protection investigates consumer complaints about home insurance, including trouble with an insurance company, agent or adjuster.

- Call: (800) 595-6053 toll-free in Kentucky (option 1 for Consumer Protection), or (502) 564-3630. - Email: DOI.ConsumerComplaints@ky.gov - File a complaint: DOI complaint page - Mail: Kentucky Department of Insurance, 500 Mero Street, 2 SE 11, Frankfort, KY 40601.

More on your options after a nonrenewal: homeowners insurance nonrenewal. [4][7][9][29]

Questions people ask